Questions from Cost Accounting

Q: Wood Creations designs, manufactures, and sells modern wood sculptures.

Wood Creations designs, manufactures, and sells modern wood sculptures. Sally Jensen is an artist for the company. Jensen has spent much of the past month working on the design of an intricate abstrac...

Q: Sarah Reynolds recently started a job as an administrative assistant in the

Sarah Reynolds recently started a job as an administrative assistant in the cost accounting department of Mize Manufacturing. New to the area of cost accounting, Sarah is puzzled by the fact that one...

Q: Save Trees Delivery has decided to analyze the profitability of five new

Save Trees Delivery has decided to analyze the profitability of five new customers. It buys recycled paper at £20 per case and sells to retail customers at a list price of £2...

Q: Antelope Manufacturing makes a component called A1030. This component is manufactured

Antelope Manufacturing makes a component called A1030. This component is manufactured only when ordered by a customer, so Antelope keeps no inventory of A1030. The list price is $115 per unit, but cus...

Q: Denise Nelson owns Interiors by Denise, an interior design consulting and

Denise Nelson owns Interiors by Denise, an interior design consulting and window treatment fabrication business. Her business is made up of two different distribution channels, a consulting business i...

Q: Dusty Rhodes, controller of Richfield Oil Company, is preparing a

Dusty Rhodes, controller of Richfield Oil Company, is preparing a presentation to senior executives about the performance of its four divisions. Summary data (dollar amounts in millions) related to th...

Q: Francisco Bakery makes baked goods for grocery stores and has three divisions

Francisco Bakery makes baked goods for grocery stores and has three divisions: bread, cake, and doughnuts. Each division is run and evaluated separately, but the main headquarters incurs costs that ar...

Q: Rod Manufacturing Company produces metal rods for their customers. Its wholesale

Rod Manufacturing Company produces metal rods for their customers. Its wholesale division is the focus of our analysis. Management of the company wishes to analyze the profitability of the three key c...

Q: Basic Boards makes keyboards that are sold to different customers in two

Basic Boards makes keyboards that are sold to different customers in two main distribution channels. Recently, the company’s profitability has decreased. Management would like to ana...

Q: Space Infonautics, Inc., produces handheld Windows CE™-compatible organizers

Space Infonautics, Inc., produces handheld Windows CEâ„¢-compatible organizers. Space Infonautics markets three different handheld models: MobilePro is a souped-up version for the exec...